Wednesday, May 24, 2017

Realtors Blame Trump (Take a Number)

Realtors say middle class will face higher taxes, lower house prices under Trump plan 

From MarketWatch:

Right now, the report noted, 35.4 million households claim itemized deductions for mortgage interest – one of only two deductions to survive the tax overhaul – and about three-quarters of those who use the mortgage interest deduction have incomes between $50,000 and $200,000.
The mortgage interest deduction is one of two components of the tax code that support homeownership. The other is the ability to deduct state and local property taxes from income taxes. An estimated 40.7 million taxpayers take the property tax deduction right now, and 70% of them have adjusted gross incomes between $50,000 and $200,000, according to the report.
Homeowners with mortgage balances between $100,000 and $500,000 would see their income taxes rise, while households with mortgages greater than $500,000 would, on average, see a net tax decrease.


Lawyerliz said...

I have no mtg, so I don't care.

Lawyerliz said...

So people be teen 50k. And 100 win.

Rob Dawg said...

Not clear. For the most part I am "immune" as most of my mortgage debt follows tax law and the primary residence(s) that still carry a mortgage are only carrying because that is the best path. Example; The last auto we bought was used and we took a loan. 2.xx something. Face it. Sub 3% rate, who cares? The car before that was new off the truck. 3 miles on the odometer. Literally backed off the boat onto the carrier onto the lot. Honda was pissed we looked at their loan package and wrote a check instead. That was long ago however. If the rules change to our disadvantage we will "write a check."

LBD said...

Hey! Some of us are working at not having a job.

Honestly limit mortgage deductions to $250K Principle. Limit Government backed loans to the same amount. Refi and lose the mortgage deduction. Make houses a home again and anything more is a business. IMO.

Rob Dawg said...

I'd be fine with limiting HMID. Sliding cap starting at $300k. Nothing above $600k. I'd entertain an incentive to encourage getting loans below certain thresholds.

Doesn't matter for Schedule C reporting as interest is an expense. Deductible.

Cinco-X said...

Does Trump get credit for the DJIA closing above 21000? Maybe it's cuz he's out of the country

LBD said...

O was weak and it shows. IMO

Rob Dawg said...

I rarely give Rush credit for anything beyond our mutual disdain for the media but he actually did the blind squirrel thing today. The Trump budget assumes 3% GDP growth which appears positive side reasonable. Every single Obama budget made assumptions between 2x and 6x actual results. That's of course tossing out the DIV/0 instance(s).

You don't have to like him to begrudge him and credit him with honest math.